Fiscal policy uncertain, could affect monetary policy – FOMC’s L.Brainard

Lael Brainard, member of the Board of Governors of the FOMC, said on Tuesday that fiscal policy remains uncertain and carries the potential to affect monetary policy, while fiscal stimulus near full employment could prompt rate hikes.

In addition, Brainard argued that gradual normalization stays appropriate, although monetary policy adjustment could be faster than initially expected. He added that market expectations for hikes remain closer to the ‘dot plot’.